Спереводом, in the past, financial management was not a major concern for a business. a company used to establish relations with a local bank. the bank handled the financing and the company took care of producing and selling. today only, a few firms operate in this way. usually businesses have managers who work with the banks. they negotiate transactions, compare rates among competing financial institutions. financial management begins with the creation of a financial plan. the plan includes timing and amount of funds and the inflow and outflow of money. the financial manager develops and controls the financial plan. he also forecasts the economic conditions, the company’s revenues expenses and profits. the financial manager’s job starts and ends with the company’s objectives. he reviews them and determines the funding they require. the financial manager compares the expanses involved to the expected revenues. it helps him to predict cash flow. the available cash consists of beginning cash plus customer payments and funds from financing. the financial manager plans a strategy to make the ending cash positive. if cash outflow exceeds cash inflow, the company will run out of cash. the solution is to reduce outflows. the financial manager can trim expenses or ask the customers to pay easter. the financial manager also chooses financing techniques. one of them is short-term financing. another is long term financing. at the end of the fiscal year, the financial manager reviews the company’s financial status and plans the next year’s financial strategy.